ACCC takes Aveling Homes to Federal Court for Misleading Review Website

Wednesday 15 March 2017 @ 9.23 a.m. | Trade & Commerce

The Australian Competition and Consumer Commission (ACCC) have initiated proceedings in the Federal Court of Australia against Perth-based home building company Aveling Homes Pty Ltd. It is alleged by the consumer watchdog that Aveling Homes engaged in misleading conduct and false and misleading representation with regards to its online review website that gave the impression they were affiliated with an independent third-party review website.

Background to the Case

The ACCC contests that the review website represented that the website was independent of Aveling Homes, and that the overall appearance of the website gave the impression that the site was affiliated with third-party review site Product Review. Further to this, the ACCC will argue that the website was deliberately managed by Aveling Homes so as to ensure an overall favourable impression of the company. The ACCC alleges that this is done through obscuring or removing unfavourable reviews to ensure a consistent set of positive reviews. ACCC Deputy Chair Dr Michael Schaper said:

“Online reviews are increasingly being relied on by consumers and they should be able to trust that those reviews are independent, unbiased and accurately reflect the range of consumer feedback received.”

It is also alleged by the ACCC that Aveling Homes marketing manager, Sean Quartermaine, was knowingly concerned in Aveling’s conduct.

Aveling Homes Response

The company as well as Mr Quartermaine have denied any wrongdoing and have stated that they would “fiercely defend all the allegations.” A company representative said:

“It is understood that the ACCC does not allege that posted online reviews were fake or their content was not genuine…Both the company and Mr Quartermaine reject any assertions in that regard.”

The company has refrained from making any further comment due the matter being due for court. 

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